This opens a \u20b95 lakh crore market opportunity.<\/p>\n
![\"\"](\"https:\/\/indusentry.com\/blogs\/wp-content\/uploads\/2025\/11\/RBI-Opens-\u20b95-Lakh-Crore-Opportunity-for-India-Expansion-1.jpg\")
<\/p>\n
What Changed<\/h2>\n
Foreign companies entering India through acquisitions faced limited financing. NBFCs, private equity, and o\u01afshore banks dominated while Indian banks sat on the sidelines.<\/p>\n
RBI Governor Sanjay Malhotra announced the framework change October 1, 2025. Banks now finance up to 70% of acquisition value, with companies funding 30% through equity.<\/p>\n
The Numbers<\/h2>\n
India’s M&A market hit $120 billion in FY24. With 40% involving debt and banks capturing 30%, that’s \u20b91.2 lakh crore in new lending from M&A alone.<\/p>\n
Deal values jumped 81% to $71.5 billion in 2024. Domestic transactions represent 70% of activity, up from 63% in 2023.<\/p>\n
Why This Matters<\/h3>\n
Cheaper capital. Indian bank debt costs less than o\u01afshore financing, with no withholding tax on interest payments.<\/p>\n
Faster execution. Domestic banks familiar with Indian frameworks cut deal closure time significantly.<\/p>\n
Mid-sized expansion becomes viable. Companies with \u20b9200-500 crore valuations can pursue acquisition strategies previously reserved for large conglomerates.<\/p>\n
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Pharmaceuticals and healthcare attract consistent inbound M&A. Manufacturing consolidation strengthens India’s supply chain position.<\/p>\n
Technology services recorded 135 deals in H1 2025. Infrastructure, financial services, and renewable energy draw strategic investments.<\/p>\n
\ud835\uddd5\ud835\uddf2\ud835\ude06\ud835\uddfc\ud835\uddfb\ud835\uddf1 \ud835\udde0&\ud835\uddd4<\/h3>\n
RBI raised IPO financing from \u20b910 lakh to \u20b925 lakh per person. Lending against shares increased from \u20b920 lakh to \u20b91 crore.<\/p>\n
They removed ceilings on loans against debt securities and withdrew restrictions on lending to borrowers above \u20b910,000 crore.<\/p>\n
\ud835\udde7\ud835\uddf5\ud835\uddf2 \ud835\udde7\ud835\uddf6\ud835\uddfa\ud835\uddf6\ud835\uddfb\ud835\uddf4 \ud835\uddd4\ud835\uddf1\ud835\ude03\ud835\uddee\ud835\uddfb\ud835\ude01\ud835\uddee\ud835\uddf4e<\/h3>\n
Guidelines take e\u01afect April 1, 2026. Banks develop frameworks now, creating a strategic window for companies planning India entry.<\/p>\n
Those understanding the new landscape before competitors will structure better deals and move faster.<\/p>\n
India attracted $81 billion in foreign investment in FY24-25. Momentum builds as financing barriers fall.<\/p>\n
\ud835\udde7\ud835\uddf5\ud835\uddf2 \ud835\udde4\ud835\ude02\ud835\uddf2\ud835\ude00\ud835\ude01\ud835\uddf6\ud835\uddfc\ud835\uddfb \ud835\uddd9\ud835\uddfc\ud835\uddff\ud835\ude04\ud835\uddee\ud835\uddff\ud835\uddf1<\/h3>\n
Market entry through acquisition became accessible. The financing exists, regulatory support is strong, and sectors show solid trajectories.<\/p>\n
Is your India expansion strategy positioned to leverage this shift?<\/p>\n